If you've been listening to Adam and I over the last few months, then today's downside move (which, as I write, is 120 points of red on the Dow Jones Industrial Average) is not surprising.

After all, yesterday's trading action witnessed the Dow setting a new record close - trailed closely by the S&P 500, which finished at its best level in more than six years.

But here's the thing: These upside moves come at a very dangerous time for the major market averages - because we're currently in the midst of one of the longest periods in history without a major correction.

Adam has studied these correction patterns in past missives, but it's worth reiterating again today. From 1996 to 2006, for example, we saw 15 market retrenchments that averaged 15% declines. During said period, these retrenchments occurred every eight months. How long has it been since our last 15% decline?

Well, not to rain on anyone's bullish parade, but it's been well over eight months since the last downside event.

For this very reason, Adam and I are carrying protective downside puts in our WaveStrength Options Weekly service, and today's 100-point move has increased their value by 37%.

And remember, that 37% gain has come on a day when the Dow is down 0.87%.

Just imagine what'll happen if the Dow loses 10% to 15%!

In our view, the cost of downside insurance is well worth the price premiums.